Legal Question in Banking Law in India
Sir,
I was a employee of a pvt ltd company before 12 years. At that time the owner of the company , had taken loan from co operative bank. He hypothicated plant and machinery and given his flat as a collatral security. That time owner and banker told me to sign as a gaurantor and told me you will not have any problem . Trusting them I signed as a gaurantor. Now unit is NPA. And bank has attached the factory and machinery. But not attached the flat bacause of legal fight between owner and bank. Now Bank is sending us letters to pay the debt. And freezed my bank account. What should I do in this case ?
I am salaried person with low income.
1 Answer from Attorneys
23.10.2014
Dear Sir / Madam,
Legally speaking, banks do not prefer an employee of a Company to stand as guarantor. However, you ought not to have signed as the guarantor. Nevertheless, you should inform the Bank that as a mere salaried employee of the Company, you were not eligible to stand as the guarantor for loans availed by the Company. The best recourse for you is to seek another job and operate your salary A/c with some other bank.
Regards,
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